R1 RCM Announces Preliminary Fourth Quarter Results
January 08 2024 - 7:00AM
R1 RCM Inc. (NASDAQ: RCM) (“R1”), a leading provider of
technology-driven solutions that transform the patient experience
and financial performance of healthcare providers, today announced
preliminary fourth quarter 2023 financial results. The Company
expects to report its 2023 financial results on February 27, 2024.
2023 Fourth Quarter Preliminary PreviewR1
anticipates fourth quarter 2023 revenues of approximately $563 to
$567 million based on its preliminary review, which represents an
increase of approximately 6 to 6.5 percent compared to the prior
year. Revenue in the quarter reflects continued double digit growth
in modular revenue partially offset by delays in timing of certain
new client transitions and implementations, as well as lower
sequential incentive fees. Fourth quarter 2023 operating income is
anticipated to be between $36 and $39 million, net loss between $8
and $10 million and adjusted EBITDA between $163 to $166 million,
reflecting solid margin performance resulting from continued cost
discipline. In addition, during the quarter the Company paid the
remaining outstanding balance of $60 million on its revolver.
“Our preliminary fourth quarter results create the foundation
for continued growth in 2024, including the contribution from the
pending acquisition of Acclara and related 10-year agreement with
Providence,” said Lee Rivas, chief executive officer of R1. “R1’s
ability to meet customers at any stage in the revenue cycle will
continue to support long-term growth while driving value for our
customers, partners, and shareholders.”
About R1 RCMR1 is a leading provider of
technology-driven solutions that transform the patient experience
and financial performance of hospitals, health systems, and medical
groups. R1’s proven and scalable operating models seamlessly
complement a healthcare organization’s infrastructure, quickly
driving sustainable improvements to net patient revenue and cash
flows while reducing operating costs and enhancing the patient
experience. To learn more, visit: r1rcm.com.
Forward-Looking StatementsThis press release
contains “forward-looking statements” made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements generally relate to
future events and relationships, plans, future growth and future
performance, including, but not limited to, statements about the
expected completion and effects of the acquisition of Acclara and
related transactions, the Company's strategic initiatives, and the
Company's future financial and operational performance, including
estimated preliminary fourth quarter 2023 results. These statements
are often identified by the use of words such as “anticipate,”
“believe,” “contemplate,” “designed,” “estimate,” “expect,”
“forecast,” “goal,” “intend,” “may,” “outlook,” “plan,” “predict,”
“project,” “see,” “seek,” “target,” “would,” "should" and similar
expressions or variations or negatives of these words, although not
all forward-looking statements contain these identifying words.
These statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of the Company's management and are not predictions of actual
performance.
These forward-looking statements are provided for illustrative
purposes only and are not intended to serve as, and must not be
relied on by any investor as, a guarantee, assurance, prediction or
definitive statement of fact or probability. Actual outcomes and
results may differ materially from those contemplated by these
forward-looking statements as a result of uncertainties, risks and
changes in circumstances, including but not limited to risks and
uncertainties related to: (i) the ability of the parties to
consummate the acquisition of Acclara and related transactions in a
timely manner or at all; (ii) satisfaction of the conditions
precedent to the consummation of the acquisition of Acclara and
related transactions, including the receipt of required regulatory
approvals; (iii) the Company's ability to timely and successfully
achieve the anticipated benefits and potential synergies of the
acquisition of Acclara and related transactions; and (iv) the
impact of the restatements of the financial statements for
non-reliance periods on the price of the Company's common stock,
reputation and relationships with investors, suppliers, customers,
employees and other parties. Additional risks and uncertainties
that could cause actual outcomes and results to differ materially
from those contemplated by the forward-looking statements are
included under the heading “Risk Factors” in the Company's annual
report on Form 10-K/A for the year ended December 31, 2022,
quarterly reports on Form 10-Q and any other periodic reports that
the Company may file with the U.S. Securities and Exchange
Commission. The foregoing list of factors is not exhaustive.
All forward-looking statements included herein are expressly
qualified in their entirety by these cautionary statements as of
the date hereof and involve many risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements. Subsequent events and
developments, including actual results or changes in the Company’s
assumptions, may cause the Company’s views to change. The Company
assumes no obligation and does not intend to update these
forward-looking statements, except as required by law. You are
cautioned not to place undue reliance on such forward-looking
statements.
Preliminary 2023 Financial ResultsThe
preliminary ranges of the Company’s financial results for fourth
quarter 2023 included in this press release are preliminary,
unaudited and subject to completion, reflect management’s current
views, and may change as a result of management’s continued review
and the completion of audit procedures. Such preliminary results
are subject to the finalization of year-end financial and
accounting procedures (which have yet to be performed) and should
not be viewed as a substitute for audited results prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”). The Company has not yet filed its annual report on Form
10-K for the year ended December 31, 2023. The preliminary
financial results represent management estimates that constitute
forward-looking statements subject to risks and uncertainties. As a
result, the preliminary financial results and other information
provided herein may materially differ from the actual results that
will be reflected in the consolidated financial statements for the
year ended December 31, 2023 when they are completed and publicly
disclosed. The Company undertakes no obligation to update or
supplement the information provided herein until the Company
reports its final financial results for the year ended December 31,
2023.
Non-GAAP Financial InformationSome of the
financial information and data contained in this press release,
including Adjusted EBITDA, have not been prepared in accordance
with GAAP. Adjusted EBITDA may be calculated differently from, and
therefore may not be comparable to, similarly titled measures used
by other companies. This non-GAAP financial measure should not be
considered in isolation or as a substitute for analysis of our
results of operations as reported under GAAP. Please refer to the
end of this press release for a reconciliation of non-GAAP
financial measures to their most directly comparable GAAP financial
measure.
Reconciliation of GAAP Preliminary Net Loss Ranges to
Non-GAAP Preliminary Adjusted EBITDA Ranges
$
in millions |
Low-End |
High-End |
Q4'2023E |
Q4'2023E |
Net Loss |
($8) |
($10) |
Plus: |
|
|
Income tax provision |
$12 |
$14 |
Net interest expense |
$33 |
$34 |
GAAP Operating
Income |
$36 |
$39 |
Plus: |
|
|
Depreciation and amortization
expense |
$74 |
$77 |
Share-based compensation
expense |
$17 |
$17 |
CoyCo 2 share-based compensation
expense |
$2 |
$3 |
Strategic initiatives, severance
and other costs |
$31 |
$33 |
Adjusted
EBITDA |
$163 |
$166 |
Contacts
R1 RCM Inc.
Investor Relations:Evan Smith, CFA(516)
743-5184investorrelations@r1rcm.com
Media Relations:Allison + PartnersAmanda
CritelliR1PR@allisonpr.com
R1 RCM (NASDAQ:RCM)
Historical Stock Chart
From Jul 2024 to Aug 2024
R1 RCM (NASDAQ:RCM)
Historical Stock Chart
From Aug 2023 to Aug 2024